IFRS 15 – Revenue from contracts with customers.
The new IFRS 15
- Replaces IAS 18 Revenue, IAS 11 Construction Contracts and some revenue-related Interpretations,
- Establishes a new control-based revenue recognition model,
- Changes the basis for deciding whether revenue is to be recognized over time or at a point in time,
- Provides new and more detailed guidance on specific topics,
- Expands and improves disclosures about revenue.
The Standard will impact all entities in all industries, but the extent of the impact can vary significantly.
The core principle of IFRS 15 is that an entity should recognize revenue to depict the
transfer of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those goods or
To achieve that core principle, an entity should apply the following steps :
• Step 1: Identify the contract with a customer.
• Step 2: Identify the performance obligations in the contract.
• Step 3: Determine the transaction price.
• Step 4: Allocate the transaction price to the performance obligations in
• Step 5: Recognize revenue when the entity satisfies a performance
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